Trump and Xi to discuss trade in Washington, with agriculture, energy and rare earths in focus

Huaxi Nonferrous announced on September 18 that its indirect controlling shareholder Guangxi Key Metals Group, together with its shareholders Beibu Gulf Port Group and the Key Metals Equity Fund, signed a Cooperation Framework Agreement with China Minmetals Corporation. China Minmetals plans to increase capital in Guangxi Key Metals Group to acquire a 51% stake and consolidate Guangxi Key Metals Group into its financial statements. After the transaction is completed, Beibu Gulf Port Group will no longer indirectly control the company, and the actual controller of Huaxi Nonferrous will change from the State-owned Assets Supervision and Administration Commission of the People's Government of Guangxi Zhuang Autonomous Region to China Minmetals, which will indirectly hold 56.47% of Huaxi Nonferrous. Because China Minmetals' indirect holding in the company through Guangxi Key Metals Group will exceed 30% of the issued shares, a mandatory general offer obligation is triggered. China Minmetals plans to make a general offer at 47.40 yuan per share to all shareholders of Huaxi Nonferrous A-shares other than the controlling shareholder Huaxi Group, proposing to acquire 275 million unrestricted tradable shares, approximately 43.53% of the total share capital, all in cash, with a maximum total amount of approximately 13.051 billion yuan. Trading in the company's shares will resume on Monday, September 21, 2026. This capital increase transaction still needs to be reviewed by the shareholders' meeting of Guangxi Key Metals Group, pass the concentration of undertakings review by the State Administration for Market Regulation, and obtain approval from the competent state-owned assets supervision and administration authority. The tender offer can only be finally implemented after the completion of the delivery of the 51% stake acquired by China Minmetals through the capital increase.

China Rare Earth Group, a state-owned rare earth giant, is in talks to acquire Shenghe Resources, according to two people familiar with the matter. The talks began this year, and China Rare Earth Group wants to take a controlling stake, the sources said. If a deal is reached, Shenghe's holdings in overseas companies would be transferred, including a 3% stake in US rare earth company MP Materials, which would put China Rare Earth Group in the position of investing in MP, whose largest shareholder is the US Department of Defense. A successful acquisition would bring one of China's last major privately owned rare earth mining and refining companies under China Rare Earth Group, ending a decades-long effort to consolidate the sector under state control. Shenghe acquired Australia's Peak Rare Earths last year. According to one of the sources, a deal would make it easier for Shenghe to secure the quotas the Chinese government uses to manage supply. China Rare Earth Group, Shenghe Resources and China's Ministry of Commerce did not respond to requests for comment.

The European Union is demanding concrete action from China to rebalance trade with the EU, setting a deadline for initial results by this October and warning that it will use every tool at its disposal if there is no progress. EU Trade Commissioner Maroš Šefčovič held a phone call with Chinese Commerce Minister Wang Wentao on September 17, covering issues including the management of goods exported to the EU, greater market access in China for European companies, and controls on rare earth exports. European Commission spokesperson Olof Gill said serious negotiations remain important, but the EU wants to see concrete initial results from the meeting in Beijing in October, which will show whether both sides are moving from words to outcomes. The EU currently runs a trade deficit with China of more than 1 billion euros, or 1.1 billion dollars, per day, prompting the European Commission, as well as Germany, to keep up pressure on China. EU leaders are scheduled to discuss and consider countermeasures to China's trade practices in mid-October. European Commission President Ursula von der Leyen warned on September 16 that the trade deficit with China has reached a critical turning point, and that while some see the EU as facing a second China shock, it has already arrived. Šefčovič stressed to reporters that he wants to see a clear signal that negotiations will move toward concrete positive results during next month's visit to China, where discussions will cover ways to increase exports of European goods to China as well as adjustments to customs tariff conditions.